Tether’s Profit in Bitcoin Holdings Surges Past $1 Billion: Report

• Tether gains a profit of more than $1 billion in its Bitcoin holdings, while BTC sees substantial growth.
• The platform currently owns a total of 57,576 BTC, worth $2.4B, accumulated at a rate of $22,480 per coin.
• The profit is mainly because of Tether’s strategy of purchasing BTCs using a portion of its net profits.

Tether, the blockchain-enabled platform and issuer of USDT stablecoin, has reportedly acquired a profit of over $1.1 billion from its Bitcoin holdings. The remarkable surge in BTC price over the past few days, surpassing $41,000, has greatly contributed to the 85%+ profit in Tether’s BTC holdings.

In a recent X post shared by Wu Blockchain, Chinese crypto journalist Colin Wu shed light on the total 57,576 Bitcoins, worth $2.4 billion, accumulated by Tether at a rate of $22,480 per coin. As per the tweet, 53,492 Bitcoins of the total collection were reserved before March 2023.

Reportedly, Tether’s astounding profit in Bitcoin holding is mainly driven by the platform’s purchase of cryptocurrency using a portion of the platform’s net profits. From May 2023, Tether started buying Bitcoins regularly using 15% of their net profits, adding 4,083 BTCs to their portfolio.

In May, Tether implemented a new investment strategy that regularly allocates “up to 15% of its net realized operating profits towards purchasing Bitcoin.” According to Tether’s Q1 2023 Assurance Report, Tether held approximately $1.5 billion in BTC in its reserves. The new strategy of BTC accumulation was intended to further strengthen and diversify the reserves.

Tether’s strategic choice of Bitcoin to invest in was mainly because of its “strength and potential as an investment asset,” as pointed out by the company’s CTO Paolo Ardoino. He asserted that Bitcoin’s decentralized nature, limited supply, and global adoption have “positioned Bitcoin as a favored choice among institutional and retail investors alike.” Ardoino added,  

Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential…Our investment in Bitcoin is not only a way to enhance the performance of our portfolio, but it is also a method of aligning ourselves with a transformative technology that has the potential to reshape the way we conduct business and live our lives.

Bitcoin has been creating waves in the crypto space over the past few days, showing immense growth. Currently trading at $41,821.40, BTC boasts a weekly gain of 12.67%. Bitcoin’s $816.76 billion market cap still places the cryptocurrency in the first position.